Is "actively state-managed competition" the secret sauce of the?
Is "actively state-managed competition" the secret sauce of the recent stellar rise of China? Possibly not! Ive heard that the secret sauce was actively state-managed corruption, thus the rapid rise of the oligarchs within the PRC., and hence Xis efforts to rein in corruption (a policy which is popular with the masses). I perceive the CCP as having originally intended to more-or-less follow Lenins plan for economic development in the USSR that ran from 1922 until Stalin rescinded it in 1928. Lenins New Economic Policy - Wikipedia In my perception Xi is aiming for actively pursuing co-operation between the state and the corporations, with the target being common, mutually beneficial objectives. This contrasts with say the USA where the state and the corporations have a tendency, to the detriment of the USA economy, to compete against each other as if they are adversaries. The secret sauce in the PRCs (Chinas) economic success is the pursuit of collective co-operation rather than divisive individualism. In short: the rich can get richer, as long as their wealth is equitably distributed = if the masses experience progressive increases in their standard of living, they will be co-operative in supporting the common objective, in the hope of accumulating even greater increments in their standard of living. I realise the concepts are totally foreign to USA residents, but not to those living in freer countries with higher standards of living and per capita wealth (modal average) than the USA! an obvious question of whether China managed to grow so rapidly because of or in spite of rampant corruptionCorruption features prominently in Chinas dynastic history, but its current iteration stems, ironically, from the wellregarded reforms launched by former Party chairman Deng Xiaoping. Around 1980, Deng began to open Chinas economy, paving the way for a hybrid socialistmarket economy. Economies are particularly prone to corruption during such a transition, as we also saw in the former Soviet republics in Central Asia. Dengs allegedly famous saying that to get rich is glorious removed any moral qualms about making money legally or (as it turns out) illegally. The creation of a dualtrack economy with parallel markets and statedriven activities created the incentive for corruptive interaction among three key players. One is the private entrepreneur who saw the potential to prosper by providing a better product but lacked the resources to do so. Enter player two: a representative of a state enterprise who could provide the resources, especially financing from stateowned banks. Both, however, needed the blessing of player three, the local official, who almost always was also a party member and had the authority to make the collaboration politically acceptable The Truth About China - Carnegie